5 Creative Buyer Incentives Sellers Can Use To Get Their Homes Sold Faster

Dated: October 30 2023

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5 Creative Buyer Incentives Sellers Can Use to Get Their Homes Sold Faster

5 Creative Buyer Incentives Sellers Can Use to Get Their Homes Sold Faster

With buyers feeling stressed about higher mortgage interest rates in today’s market, sellers are increasingly looking for creative ways to get buyers to make an offer on their home. While it’s true that buyers are moving slower when it comes to making a decision on a home purchase, home prices are still historically high in our area and buyers DO want to find the perfect home.

Often times a home buyer’s hesitancy to make an offer is based on having enough cash to close, buying down a mortgage rate, or having the budget to make updates to the home after closing. What can sellers do to get a buyer motivated to make an offer? The good news is there are actually a variety of ways to make buyers feel more motivated to pick your home.

Below are 5 creative ways sellers can “sweeten” a deal to make buyers give their home a 2nd look:

1. Offer a Credit Towards a Mortgage Rate Buy Down- 1 point on a mortgage will usually lower the rate by .25% and costs about 1% of the initial loan amount. For example, if the rate is 7% on a $500,000 mortgage, one point would drop the rate to 6.75% and cost $5,000. Offering a credit towards the cost of the rate buy down at closing to potential buyers could help motivate them to crunch some numbers and get a deal done.

2. Offer to Pre-pay Condo or HOA Dues- With rising HOA and Condo dues from insurance increases and Milestone Inspections this year, some buyers are feeling nervous about taking on monthly HOA and Condo Dues in addition to the purchase of their new home. Offering to pre-pay several months of the monthly dues or taking care of the 1st year of dues, is a great way to take some of the pressure off a buyer who may need a little time to get used to the new payment.

3. Advertise Your Assumable Mortgage- If you bought your home with an assumable mortgage and have a competitive mortgage rate that’s lower than today’s rate, buyers will find the assumable mortgage VERY attractive. Buyers will have to qualify with the lender, just like they would with a normal loan and there will be some traditional loan fees for them at closing too, but if you’re one of the lucky sellers that has an assumable rate mortgage at 3-5%, buyers will likely run to see if your home is a good fit for them if they know they can take advantage of the rate. VA and FHA loans are almost always assumable, as are some conventional and portfolio loans. Check with your lender if you’re not sure!

4. Consider Offering Seller Financing- If you own your home free and clear of any loans, offering seller financing can be a strategic and convenient way to not only get your home sold faster, but also for more money. For example, let’s say you’re selling a home for $500,000 that you own free and clear. You could offer seller financing with a down payment of 10-20% (similar to what a traditional lender would require), but an interest rate lower than today’s rates. The buyer would bring the down payment to the closing table and the mortgage would be for the difference, recorded against the home. Just like a normal loan, if the buyer doesn’t pay it back, the lender (you) would have the right to foreclose on the home and take it back. Some sellers love offering financing, as they get the down payment cash at closing, plus additional interest that’s paid on the loan every month, netting them more money for the house over time than they would get in a traditional sale. We always recommend having a lawyer draft the loan documents, which run anywhere from $500-$1000 for a typical transaction. The buyer pays the attorney's fees to draft the docs and the recording fees at closing for the mortgage.

5. Offer to Pay For Closing Costs- For some buyers, paying closing costs for title insurance, settlement fees, and even loan fees can feel stressful when it comes time to make a home purchase. Savvy sellers can offer to pay traditional closing costs (or more) to get buyers to bring an offer. There are a variety of closing costs that a seller can opt to pay for on the buyer’s side of a transaction, including but not limited to title insurance, survey and appraisal fees, settlement fees, loan fees and more. It’s a great way to let buyers know you’re motivated to make a deal.

Have more questions about what’s going on in our local Pinellas County housing market, or what your home may be worth right now? Don’t hesitate to give our team a call at (727) 400-3315 to speak with us more about your real estate goals. You can also CLICK HERE to send us a message directly.

Regardless of your budget or timeline, we’d love to help you buy or sell your next home!

The Sandy Hartmann Group

Christie's International Real Estate

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Andrea Hartmann

Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....

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